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Swarmio Media FAQ

November 22, 2021

General:

What does Swarmio do?

Swarmio is a video gaming & esports software-as-a-service (SaaS) for telecommunications operators (“telcos”) that is focused on providing an end-to-end gaming and esports platform for telcos to monetize their subscribers. It does this by offering telcos a turn-key gaming platform that they can sell directly to their customers, leading to strong brand interaction and higher average revenue per user (ARPU).

What are Swarmio’s solutions?

Today, Swarmio offers two main products: the Hive and the Matrix.

The Hive is a gaming and esports platform, which allows users to interact through gaming, sharing and consuming content and playing live tournaments.  The platform is easily branded for telcos and then sold to their existing customer base as an upgrade to their monthly service fee.  Players can join the platform for free to try it but can get increased value (more tournaments, play with or against influencers and win tokens to purchase gaming content) by paying a monthly fee.

The Matrix is a globally distributed edge computing platform that uses Swarmio’s proprietary Latency-optimized Edge Computing (LEC) technology. The goal of the Matrix is to extend the limits of today’s internet infrastructure and deliver a faster internet and a better gaming experience to gamers.  The Matrix provides gamers with low latency tournaments and challenges and is one of the reasons gamers look to pay a monthly fee to access the platform.

Does Swarmio have proprietary technology and any patents?

Swarmio received its first patent for its edge computing technology in July 2021. This patent focuses on reducing network delay through local distance estimation, something that could be utilized in many applications outside of sports and gaming. Deploying edge cloud computing can do more than just reduce latency for video gaming. Reliable, low latency communications are also required for autonomous vehicles and infrastructure networks. With large amounts of data processing from the edges at a minimal response time (with the help of 5G), decisions can be made in real-time.

What are the key features that are driving gamers onto the platform?

Lag is a substantial problem for many gamers today. Swarmio’s low latency technology improves in-game performance and acts as key driver to adoption. Community, personalization and customizability are what attracts gamers onto the Swarmio platform. Swarmio provides an all-in-one branded platform for the gamer to set-up whatever kind of customized content they want for their followers. Perhaps more important is the ability for these young gamers to build community on the platform, a crucial aspect across their social networks.

Why are telecommunication companies partnering with Swarmio?

Telecommunication companies are partnering with Swarmio to capture, engage, and monetize their millennial and digital natives with community and gaming engagement tools. The telco industry has seen relatively little innovation over the last two decades, losing revenue opportunities from music, movies and other digital entertainment revenue opportunities to multiple innovative tech companies or streaming services. Now, the telcos could be close to losing the opportunity to convert gamers into profitable long-term clients.

Fortunately, Swarmio can help telcos monetize the estimated 2.4 billion gamers worldwide. Swarmio provides turn-key solutions for telcos to target gaming subscribers and increase ARPU. This additional, unrealized revenue stream is why telecommunications companies are interested in partnering with Swarmio. To date, Swarmio has signed 5 telco companies across the world,  and is in discussions with numerous telcos in Brazil, Philippines, Indonesia, UAE, Qatar, Kuwait, Iraq, Saudi Arabia and Tunisia..  These discussions have not yet resulted in signed agreements and may not result in signed commercial contracts.

How is the platform marketed to gamers?

Swarmio has created a platform that allows gamers to consolidate all of their fans on one central platform. This platform can be fully customized to reflect the individual gamers’ brands and values, and can increase engagement by letting fans create accounts, earn points, and play exclusive games set-up by the creator. This can help gamers increase engagement levels and build a deeper connection with their audience.

Beyond gaming, what else can gamers do on the platform?

The opportunity on the Swarmio platform goes much further than just gaming. Swarmio allows gamers to grow and monetize their following via subscriptions, increased sponsorships, or providing deep analytics to sponsors. Gamers can also set up custom tournaments, challenges, and premium rewards for their followers to increase engagement. The opportunity doesn’t end there as creators can also set-up a superfan program that gives fans access to exclusive content and rewards on the platform after paying to join.

 

Stock:

Where does Swarmio Media trade?

Swarmio trades on the Canadian Securities Exchange (CSE) under the ticker “SWRM”.

How many Swarmio shares are outstanding?

Swarmio has 97,846,878 shares outstanding.

Does Swarmio pay a dividend?

Swarmio does not currently pay a dividend.

How much do Swarmio insiders own of the Company?

Insiders own approximately 22.7% of the shares outstanding.

How much money has Swarmio raised?

Swarmio has raised $13 million in the private round, and $6 million in the public round to bring their total funding to $19 million.

 

Swarmio Team:

How do I contact Swarmio Media’s Investor Relations?

For investor Relations inquiries please contact investors@swarmio.media

Who is on Swarmio’s management team and Board?

Information on Swarmio’s management team and Board can be found here

 

Business Model:

How does Swarmio make money?

Swarmio’s business model is based on recurring revenue on a per user, per month basis. By providing a white labeled platform for telecom operators, Swarmio earns 30% to 70% per subscriber per month. The telcos then provide a gaming and esports solution for gamers, who pay US$5 to US$20 per month for the service. This results in telcos paying US$1.50 to US$7.00 USD per user, per month in revenue share to Swarmio.

How do telcos make money from Swarmio Media’s solutions?

Swarmio provides telcos with their Swarmio Hive system, which reduces Internet delays and improves gaming experiences. Using this system, telcos can provide their customers with an esports package and generate monthly subscription fees from it. These fees charged by the telcos often range from US$5 to US$20 per user, per month.

 

Audience:

Why is Swarmio focused on the Middle East, Africa, and Southeast Asia?

Swarmio has chosen to target these areas because of the large number of underserved gamers. There are one billion gamers in Asia alone, creating a large opportunity for Swarmio to fill a void for these customers. These regions also have some of the youngest demographics, presenting the opportunity for telcos to monetize young subscribers for decades. The majority of gaming servers are located in North America. This large distance between server and gamer often creates high latency. The need to reduce lag turns into demand for Swarmio’s services, which ultimately results in revenues.

Will you look to grow into other regions?

Yes. With Swarmio’s teams already working across 3 continents, Swarmio’s edge computing platform connects more than 170 data centers in more than 70 regions globally. Swarmio plans to build off this growth with goals of launching in 5 countries in the MENA region and at least 2 countries in South Asia by the end of 2021. Swarmio also wants is to build the largest edge computing gaming platform for the gaming industry. The Company is working towards this goal and each one or two key telcos in each region furthers this vision of building a global platform for the gaming industry.

How much of the gaming industry can Swarmio capitalize on?

After completing a soft launch in 3 countries (Sri Lanka, Thailand, Bahrain) Swarmio generated a very strong 29% account creation rate for users who visited the website with 2% conversion rate.

Cautionary Note Regarding Forward-Looking Statements

Information set forth on this page may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included on this website including, without limitation: statements about the Company’s growth, the Company’s ability to capitalize on the major global opportunity in the gaming and esports market, anticipated benefits to the Company’s partners and their customers from using the Company’s products, ongoing discussions with potential new customers or partners and the possibility that such discussions may result in additional contracts or revenue for the Company, the Company’s future plans, its goals and expectations, including but not limited to, the Company’s continuing ability to enter into agreements to deploy its products with international telecommunications companies and game publishers and its ability to monetize these agreements through generating SaaS based revenues are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the risks identified in the Companies long-form prospectus dated November 10, 2021 (which can be accessed through the Company’s profile on www.sedar.com). Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the respective companies undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.